Chapter 14 Motivating Employees Copyright © 2016 Pearson Canada Inc. 14-1.

Chapter 14

Motivating Employees

Copyright © 2016 Pearson Canada Inc. 14-1

Learning Outcomes:

1. Define motivation.

2. Compare and contrast early theories of motivation.

3. Compare and contrast contemporary theories of motivation.

4. Discuss current issues in motivation.


What Is Motivation?

Motivation:

The process by which a person’s efforts are energized, directed, and sustained toward attaining a goal.


What Is Motivation?

Need:

An internal state that makes certain outcomes appear attractive


Exhibit 14-1 The Motivation Process


Early Theories of Motivation

Maslow’s Hierarchy of Needs Theory

• Needs were categorized as five levels:

Individuals must satisfy lower-order needs before they can satisfy higher order needs.

Satisfied needs will no longer motivate.

Motivating a person depends on knowing at what level that person is on the hierarchy.




• Lower-order (external): physiological, safety

• Higher-order (internal): social, esteem, self-actualization


• Hierarchy of needs theory Maslow’s theory that there is a hierarchy of five human needs: physiological, safety, social, esteem, and self-actualization; as each need becomes satisfied, the next need becomes dominant.

• Physiological needs A person’s need for food, drink, shelter, sexual satisfaction, and other physical requirements.

• Safety needs A person’s need for security and protection from physical and emotional harm, as well as assurance that physical needs will continue to be met.




• Social needs A person’s need for affection, belongingness, acceptance, and friendship.

• Esteem needs A person’s need for internal esteem factors such as self-respect, autonomy, and achievement, and external esteem factors such as status, recognition, and attention.

• Self-actualization needs A person’s need to grow and become what he or she is capable of becoming.





Exhibit 14-2 Maslow’s Hierarchy of Needs


McGregor’s Theory X and Theory Y

• Theory XThe assumption that employees dislike work, are lazy,

avoid responsibility, and must be coerced to perform.

• Theory YThe assumption that employees are creative, enjoy work,

seek responsibility, and can exercise self-direction.

Motivation is maximized by participative decision making, interesting jobs, and good group relations.



Herzberg’s Motivation-Hygiene Theory

• Attempted to explain why job satisfaction does not result in increased performance.

The opposite of satisfaction is not dissatisfaction, but rather no satisfaction.



Herzberg’s Motivation-Hygiene Theory (aka: two-factor theory)

Herzberg’s theory that intrinsic factors are related to job satisfaction and motivation, whereas extrinsic factors are related to job dissatisfaction:

Hygiene factors: factors that eliminate job dissatisfaction, but don’t motivate

Motivators: factors that increase job satisfaction and motivation


Exhibit 14-3 Herzberg’s Two-Factor Theory


Exhibit 14-4 Contrasting Views of Satisfaction–Dissatisfaction


McClelland’s Three-Needs Theory

Three acquired (not innate) needs—achievement, power, and affiliation—are major motives in work.

Need for Achievement (nAch) The drive to succeed and excel in relation to a set of standards. Need for Power (nPow) The need to make others behave in a way that they would not have behaved otherwise. Need for Affiliation (nAff) The desire for friendly and close interpersonal relationships.



Goal-Setting Theory

The proposition that specific goals increase performance and that difficult goals, when accepted, result in higher performance than do easy goals.

Working toward a goal is a major source of job motivation.

The specificity of the goal itself acts as an internal stimulus.

Contemporary Theories of Motivation


Goal-Setting Theory

Factors that influence the goal–performance relationship:

• Feedback • Goal commitment• Self-efficacy• National culture




Self-efficacy:

An individual’s belief that he or she is capable of performing a task.


Exhibit 14-5 Goal-Setting Theory



Reinforcement Theory

The theory that behaviour is a function of its consequences.

Reinforcers

Consequences immediately following a behaviour that increase the probability that the behaviour will be repeated


Job Design Theory

• How tasks can be combined to form complete jobs

• Factors influencing job design:

Changing organizational environment/structureThe organization’s technologyEmployees’ skills, abilities, and preferences




Job Design:

The way tasks are combined to form complete jobs.



Job Scope:

The number of different tasks required in a job and the frequency with which these tasks are repeated..

Job Enlargement:

The horizontal expansion of a job through increasing job scope..



Job Enrichment:

The vertical expansion of a job by adding planning and evaluating responsibilities.



Job Characteristics Model (JCM):

A framework for designing motivating jobs.

• Five primary job characteristics:• Skill variety: The degree to which a job requires a variety of activities

so that an employee can use a number of different skills and talents.

• Task identity: The degree to which a job requires completion of a whole and identifiable piece of work.

• Task significance: The degree to which a job affects the lives or work of other people.



Job Characteristics Model (JCM):

A framework for designing motivating jobs.

• Five primary job characteristics continued:• Autonomy: The degree to which a job provides substantial freedom,

independence, and discretion to the individual in scheduling work and determining the procedures to be used in carrying it out.

• Feedback: The degree to which carrying out work activities required by a job results in the individual’s obtaining direct and clear information about the effectiveness of his or her performance.


Exhibit 14-6 Job Characteristics Model


Equity Theory:

Proposes that employees perceive what they get from a job situation (outcomes) in relation to what they put in (inputs) and then compare their inputs-outcomes ratio with the inputs-outcomes ratios of relevant others.



Exhibit 14-7 Equity Theory



• If the ratios are perceived as equal then a state of equity (fairness) exists.

• If the ratios are perceived as unequal, inequity exists and the person feels under- or over-rewarded.

• When inequities occur, employees will attempt to do something to rebalance the ratios (seek justice).


Employee responses to perceived inequities:

• Distort own or others’ ratios• Induce others to change their own inputs or

outcomes• Change own inputs (increase or decrease efforts) or

outcomes (seek greater rewards)• Choose a different comparison (referent) other

(person, systems, or self)• Quit their job



Equity Theory

Distributive Justice:

The perceived fairness of the amount and allocation of rewards among individuals (i.e., who received what?).



Equity Theory

Procedural Justice:

The perceived fairness of the process used to determine the distribution of rewards (i.e., how who received what).



Expectancy Theory

Individuals act based on the expectation that a given outcome will follow and whether that outcome is attractive.




Key to the Expectancy theory is understanding and managing employee goals and the linkages among and between effort, performance, and rewards.

• Effort: employee abilities and training/ development

• Performance: valid appraisal systems

• Rewards (goals): understanding employee needs


Exhibit 14-8 Simplified Expectancy Model


Expectancy Relationships

• Expectancy (effort-performance linkage)The perceived probability that an individual’s effort will

result in a certain level of performance.

• InstrumentalityThe perception that a particular level of performance

will result in attaining a desired outcome (reward).

• ValenceThe attractiveness/importance of the performance

reward (outcome) to the individual.



Exhibit 14-9 Steps to Increasing Motivation, Using Expectancy Theory


Integrating Theories of Motivation

The three motivation theories are complementary. Exhibit 14-10 illustrates how they are integrated. The basic foundation is Expectancy Theory



Exhibit 14-10 Integrating Contemporary Theories of Motivation


Current Issues in Motivation

Cross-Cultural Challenges

Motivational programs are most applicable in cultures where individualism and quality of life are cultural characteristics.

• Uncertainty avoidance of some cultures inverts Maslow’s needs hierarchy.

• The need for achievement (nAch) is lacking in other cultures.• Collectivist cultures view rewards as “entitlements” to be

distributed based on individual needs, not individual performance.



Cross-Cultural Consistencies:

Interesting work is widely desired, as is growth, achievement, and responsibility.


Motivating Minimum-Wage Employees

• Employee recognition programs• Provision of sincere praise• Empowering • Guidance • Training



Motivating Professionals

• Characteristics of professionalsStrong and long-term commitment to their field of expertiseLoyalty is to their profession, not to the employerHave the need to regularly update their knowledgeDon’t define their workweek as 8:00 am to 5:00 pm

• Motivators for professionals• Job challenge• Organizational support of their work



Motivating Contingent Workers

• Opportunity to become a permanent employee• Opportunity for training• Equity in compensation and benefits



The Role of Money

• The most commonly used reward in organizations is money.

• When organizations develop reward programs, they need to consider very carefully what individual employees value.

• A number of studies suggest that an individual’s attitude toward money is correlated with personality traits and demographic factors




Employee Recognition Programs:

Giving personal attention and expressing interest, approval, and appreciation for a job well done.



Pay-for-performance:

Variable compensation plans that reward employees on the basis of their performance: piece rates, wage incentives, profit-sharing, and lump-sum bonuses.



• Designing Appropriate Rewards Programs • Stock option programs

• Using financial instruments (in lieu of monetary compensation) that give employees the right to purchase shares of company stock at a set (option) price• Options have value if the stock price rises above the

option price; they become worthless if the stock price falls below the option price


From Theory to Practice: Suggestions for Motivating Employees

• Recognize individual differences• Match people to jobs• Use goals• Ensure goals are attainable• Individualize rewards• Link rewards to performance• Check the system for equity• Show care and concern for employees• Use recognition• Don`t ignore money


Chapter 14 Motivating Employees Copyright © 2016 Pearson Canada Inc. 14-1.

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